Exam Flashcards
A beauty parlor burns to the ground. What type of loss is this to the owner?
Direct loss
What is the age requirement to be licensed in the state of Minnesota
18
A business owners policy is
A self-contained complete package policy
A health plan policy cannot be issued or delivered in Minnesota until what has been filed with the Commissioner
Both risk classification and premium rates
A participating insurance policy will
Pay dividends to the policy holder
A person who is not named as an insured on the declarations page of a policy but is protected by the policy, usually in regard to a specific interest is known as
An additional insured
The policy holder has an equipment breakdown policy with a $200,000 limit. If a boiler explosion causes $100,000 damage to the boiler, $50,000 damage to the insured’s building, and $30,000 of expediting expenses, how much will the insured collect
$175,000. There is a limit of $25,000 for expediting expenses
A policy is comprised of
Declarations page, conditions, interline endorsements and coverage parts
A structure rented to a neighbor for use as a private garage would be covered under what coverage in a dwelling policy
Coverage B other structures
An individual’s construction company leaves mobile equipment and construction machinery on the job site until the project is completed. What could the individual use to insure it
Contractors equipment floater
An insured condominium owner wants to purchase fire and extended coverage for personal property liability coverage for himself and his family members. He should purchase
HO-6 condominium owners
An insured works outside the home. His sister lives with him and cares for his 4 children. When his home is severely damaged by fire, they move in to an apartment. The largest apartment available is a 2 bedroom so the sister stays at a motel. How much will HO-3 pay for their living expenses .
All expenses up to the Coverage D limit
An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. What has the insurer violated
Consideration
An insurer that holds a Certificate of Authority in the state in which it transacts business is considered
An authorized insurer
Before the insurer will pay any loss under a policy, what is the insured usually required to produce
Proof of loss form
Besides earthquakes which peril is covered by the earthquake cause of loss form under a commercial property policy
Volcanic eruptions
Broad theft coverage can be added as an endorsement to a dwelling policy if
The insured is the owner-occupant of the dwelling
Burglary is defined as
The taking of property from within a premises leaving visible signs of forced entry
Equipment breakdown coverage is written with a single limit of insurance per accident. However, what is the sublimit for hazardous substance cleanup, or repair or replacement of contaminated property
$25,000
Homeowners policies provide coverage for $2,500 for what
Business property while on the residence premises
How does a mobile home endorsement affect the other coverage of law or ordinance in a homeowners policy
It removes the coverage
How long is the waiting period after the application has been accepted before flood coverage goes into effect
30 days
If an insurer meets all the requirements, their Certificate of Authority should arrive within how many days of applying
60 days
In life insurance, producers are permitted to share or split commissions provided that
Both are properly licensed in that line of insurance
